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/ For Sellers / 3 Estimated Net Proceeds

3 Estimated Net Proceeds

The following closing costs are for Texas.  They can vary from state to state.

Here’s what you can expect to pay as a home seller:

Broker’s Commission. If you’re using a full-service brokerage firm, expect to pay 6%  of the sales price. This includes 3% for the listing agent, and 3% for the selling agent.

Cost of the Survey.  In Texas the buyer usually pays for the survey if needed.  If the seller has a survey, and the buyer’s lender will accept it.  Then there is no fee for a survey.  Also with a cash sale, the buyer may elect to not purchase a survey. The price for a survey can range from $375 to $400.

Owners Title Policy.  In Texas the seller usually pays for the Owners Title Policy.  The cost of the Title Policy varies with the purchase price of the home.  Most people figure 1% for ease of calculation.  The actual figure will vary from this.  The lower the purchase the higher the Title Policy and vice versa.

Pro-Rated Property Taxes.  The seller should be charged with the amount of tax from the beginning of the real property tax year to the date of closing.  You calculate a proration, by identifying the calendar days covered by, say, your property tax bill. Then, divide the bill amount by that number of days. That will give you a daily fee for the bill. Then, multiply that fee by the number of days up to and including the closing.

Home Warranty. In Texas, many existing homes are sold with a home warranty, which guarantees to the buyer that all of the mechanical and electrical appliances are working on the day of closing and are guaranteed to work for the first year of ownership. The cost for a home warranty starts around $355-$450 and can increase as additional option items are added and the size and type of the home.

Doc Preparation Fee / Attorney.  The title company will hire an attorney to prepare the legal documents for closing.   This cost typically runs between $125 to $200.

Recording Fee.   The fee a government charges for reporting a real estate purchase or sale into the public record.  The cost is ususally $25.

Seller Articles

1. Decision to Sell.

2. Pricing Strategy.

3. Estimated Net Proceeds.

4. Preparing and Staging.

5. Virtual Tours.

6. Marketing Plan.

7. How to Negotiate with Buyers.

8. Home Inspection and Warranty.

9. Appraisal.

10. Preparing for the Closing as a Seller.

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Bill Edge, Managing Broker

2900 Suffolk Dr.
Houston, TX 77027-5122
Direct: 713-240-2949
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bill@billedge.com

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